An increase in the quantity of output will cause the cost minimizing quantity of an input to go ________ if the input is a normal input and will cause the cost minimizing quantity of the input to go _________ if the input is an inferior input.
A)up; up
B)up; down
C)down; up
D)down; down

Question

Quizplus · Accepted Answer

For a normal input, as output increases, the demand for the input increases, leading to an increase in its quantity to minimize costs. For an inferior input, as output increases, the demand for the input decreases, leading to a decrease in its quantity to minimize costs.

An Increase in the Quantity of Output Will Cause the Cost